3 Reasons To Get Approved For A Mortgage Before You Shop For A Home

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When you call a real estate agent for assistance with finding homes for sale, the agent may ask you numerous questions. One of these will relate to your financing and ability to get a loan. If you have not yet talked to a lender about getting a loan to buy a house, the agent will probably recommend taking care of this before you look for a house, and these are three good reasons to do this.

To Avoid Wasting People's Time

Can you imagine if you viewed dozens of homes and found the one you want to buy, but when you went to get a loan to buy the house the bank turned you down? Not only would this be a waste of your own time, but you would have also wasted a lot of other people's time. This includes the real estate agent that showed you the homes and all of the homeowners that spent time preparing their homes for viewings.

To Find Out What You Can Afford

It's also a good idea to get approved for a loan before you shop so that you know your limits. There are homes in all price ranges for sale, but how will you know how much you can afford if you do not seek preapproval from the bank? The answer is that you really wouldn't know; it would all be guesswork.

This is why you should apply for a mortgage before you shop. When you do this, the lender will review all your financial information, along with your credit score, and this will help determine how much you can borrow. Once you know this, you will have a good idea as to what price range to stick with when looking at homes.

To Speed Up The Sale

The other good reason to do this is to speed up the sale of the home you decide to purchase. If you are not preapproved when you shop for a home, it will take a lot longer for the paperwork to be completed. Getting your preapproval out of the way will save time and give you a lot of insight when it comes to shopping for a home.

Once you receive a document from your lender that states that you are preapproved, contact a real estate agent. He or she would be happy to help you find the right home to buy in your city.